RON430

Not sure exactly who dug such a deep hole for Volvo but Ford didn't help. I can totally understand MB and BMW giving the integration reason. When Volvo went front driver, that made their potential integration with an upmarket brand difficult. Please don't bother posting about all the goodness of FWD, I am just talking about the business aspect of running a predominantly RWD car company having much interest in Volvo. Ford has been able to sit back and chuckle at GM and ChryCo's problem with getting their bailout checks (can't wait for the Dec. sales thread tomorrow) but I wonder how far behind Ford is going to be?

Daimler puts brakes on buying Volvo Cars from troubled Ford
BERLIN

5/01/2009 1:00:00 AM
German car giant Daimler has decided not to buy Swedish-based Volvo Cars from ailing US Ford, according to Der Spiegel magazine.

''Daimler boss Dieter Spiegel has carried out a close examination of a possible purchase in the past few weeks and acknowledged a series of possible drawbacks,'' the German weekly says in its upcoming edition.

Ford Motor Company said at the beginning of last month that it was reviewing strategic options for Volvo Car Corporation ''in response to the significant decline in the global auto industry, particularly in the past three months and the severe economic instability worldwide''.

Ford said the review would probably take several months to complete, adding that it would continue to work closely with Volvo Cars, which is restructuring ''to operate on a more stand-alone basis'' under chief executive Stephen Odell.

Der Spiegel said Daimler's great rival BMW had also turned down the chance to take over Volvo, leaving Ford with little hope of finding a buyer, though it mentioned China's Changan as a possibility.

According to the weekly, Daimler foresaw problems with harmonising Volvo parts and practices with its own prestige Mercedes cars, which would require substantial investment and small return.

Ford bought Volvo Cars in 1999 from the Volvo group for a hefty $US6.45billion ($A9.1billion).

Volvo Cars sales peaked in 2000 at a record 422,100 units, according to Ford.

Mr Odell said in Ford's statement last month, ''We have a strong brand presence in Europe, North America and the Asia Pacific region, and are growing in key markets such as China and Russia, where we are the leading premium brand.''

However, car sales have slumped in the United States and Europe amid the global financial crisis that erupted in August 2007.

Volvo Cars has announced thousands of job cuts worldwide since June, most of them in Sweden.

Volvo Group chairman Finn Johnsson recently told Swedish financial daily Dagens Industri that his company was not interested in buying back Volvo Cars, and the Swedish state has also ruled out acquiring it. AFP


http://www.canberratimes.com.au/news...d/1399642.aspx

Don't want to get into Chinese car mfrs as I have little to add to what they bring but I wonder if Changan could really make money off of a Volvo acquisition?

LexFather

I had no idea Volvo sales PEAKED 8 years ago. It shows how the competition has simply been or seen as a better alternative.

I really love what Volvo has done recently for the most part but add them to the list of carmakers who might go under for good.

IS-SV

Maybe Mercedes learned something from its last very expensive and lousy acquisition of an American car company.

RON430

As an ex Volvo owner, way back when the earth was just cooling and Volvos were RWD, I am not so sure I view their current state as much of an improvement. Or at least I would if they kept costs better under control. Volvo just became uncompetitive IMO at their price point. They aren't the only one in that boat, and no I don't want to hijack my own thread with, say, and RL discussion.

But I have a feeling that Ford was counting on getting more out of their Volvo investment than MB is going to get out of ChryCo. Bad time to be selling a car company. Especially one that peaked in sales eight years ago. Pity, really, I hate to see choice go away as a consumer.

herbvdh

Mercedes learned there lesson. Like I said when chrysler and Mercedes merged together either Mercedes strikes quality into Chrysler or Chrysler ruins Mercedes. It looks like Chrysler ruined Mercedes and they jumped out. IMHO I do not think Mercedes will do something that stupid again. Then on the other hand no telling what they may do.

IS-SV

IMHO, Mercedes created most of its own quality problems and they are addressing it now.

The merger was just bad business, and the sale of Chrysler later at a huge monetary (billions of dollars) loss to Mercedes is the real proof.

IS-SV

I never wanted a Volvo either, so it's no surprise that BMW and Mercedes want nothing to do with those cars either.

luxury1

I really like Volvo and their pursuit of safety is honorable. However, the interior of my favorite in their line (S80) just is dull and isn't on par with the other brands. When you price the S80 you have to evaluate your other options and the A6 and 5 are clocking in at roughly the same price tag. This makes it a very difficult decision, A6 or 5.

Oleg400

iTrader: (7)

No surprise, im sure many will agree. I never saw Volvo as a competitor just a bystander.
I agree 100% with the interior comment its the same story in the SUV its all dull Pos plastic.

IS-SV

Certainly true in last decade.

Nextourer

A pity although it seems Volvo is in a better state than Saab (who seems to be updating old designs. I've never seen a car updated so many times in its life and it still doesn't have a full redesign).

I wonder if Toyota has considered purchasing Volvo Cars. I mean their Haldex AWD is pretty decent, isn't it? Their safety record is stellar. I'm sure Toyota can benefit from and engineering standpoint.

RON430

Can't argue with any of the comments. I never viewed Volvo as a competitor to MB or BMW. Don't forget, they predate Lexus by a lot. And I don't think they were competing with those marques a few decades ago. They were a notch down in price and had more of a safety/durability image. When I bought my 142, the trim that looked like chrome was stainless steel, that hasn't existed for a while.

Volvo was a step down in price and, without trying to excite the Audi crowd, neither was Audi and they were in their own niche. And I was very happy with their product line. That has changed. I do not know where they fit today. I don't believe they can justify the price point they are going for. But I really don't want to see them go away. I would like to see them get back to finding a niche to live in. But the odds now seem to favor joining Saab in a grave. Pity.

herbvdh

Volvo and Saab are the same dealer here. That is the only Saab dealer over here in this area.

JKA.nyc

What about Porsche?

jracerlmn

if a chinese company buys volvo, i'd be glad. Hopefully it will teach Chinese car makers safety.